On March 15, CCTV News and other state media reported Deng Lun (邓伦) was recently investigated by the Shanghai Local Taxation Bureau No.4 Inspection Bureau on suspicion of tax evasion based on clues in their review and big data analytics. According to their comprehensive investigation, Deng Lun made false tax declarations by switching the nature of income from fictitious businesses between 2019 and 2020. As a result, Deng Lun was found to have evaded paying 47.65 million RMB and underpaid 13.99 million RMB in personal income taxes.
Deng Lun was said to have actively participated and cooperated during the investigation and took the initiative to pay 44.55 million RMB in back taxes. At the same time, Deng Lun also proactively reported other tax code violations that the tax bureau hadn’t reviewed yet.
In accordance with the tax law, Deng Lun was fined a total of 106 million RMB in back taxes, lates fees, and fines. Among the 106 million RMB, Deng Lun voluntarily did his own investigation on the false tax declarations and paid back 44.55 million RMB in back taxes and a fine 0.5 times of the owed taxes totaling, 22.27 million RMB. Of the unpaid 3.11 million RMB in false tax declarations, it wasn’t self inspected nor repaid, which resulted in a fine 4 times of the amount, totaling 12.43 million RMB. The Shanghai Local Taxation Bureau No.4 Inspection Bureau had already delivered their decision and administrative punishment to Deng Lun in recent days.
A representative from the Shanghai tax bureau stated after finding the tax anomalies through the analysis of big data, they started their investigation on Deng Lun’s taxes. The relevant tax authorities had already reminded and urged Deng Lun to make the appropriate corrections, but still found his actions to be incomplete.
After the news went viral with over 40 million mentions at one point, Deng Lun issued an apology letter, saying, “During the process of cooperating with the tax bureau’s investigation this time, I have already deeply self-reflected and deeply realized my own mistakes. I accept all decisions from the tax bureau. I am willing to accept responsibility and the consequences for all the related matters and will continue to proactively work hard. Deeply apologize for taking up public resources during the pandemic.”
Not too long after, several of Deng Lun’s social media accounts, including his personal Weibo and his studio, Dou Yin, and more were removed from their respective platforms. Several of Deng Lun’s sponsors have already terminated their partnership with him.
Since last year, China has implemented laws and regulations on banning entertainment workers with bad track records and commit crimes, especially tax evasion, from working in the industry again.
OMG!!! Such a silly thing to do but he is one of many that did so… The ta office is not being fair as I am such they kept quiet on many others who committed the same crime. Only a handful is named and shamed to warn others. I do wonder if this really means the end of his career…
I guess he was part of ‘Beijing line’ that has fallen. In the past there were two strongest teams in mainland C-ent so called Beijing and Shanghai lines backed by different capital. Something happened and Beijing line fully fell. Capital went bankrupt, companies closed and many now disgraced artists were part of this line. I am wondering how it will end. They purged the land it’ll take years to rebuild it.
Thank you for your explanation!! I never knew such background information.
Just based on what happened to previous fallen celebs from China…no doubt, this is the end of DL’s career. They aren’t going to spare him.
Those other celebs were extremely scandalous though, like FBB was the first to get caught, so she needs to be made an example of. ZS, surrogacy on top of tax evasion. I googled and apparently someone named Viya, a top influencer did the same and she has vanished. But, Deng Lun has been proactive and tried to correct course, so I wonder if his sentencing might be lighter.
I also remember reading somewhere, but I can’t recall, that the authorities are not as harsh in punishment (though still strong punishment) for those that are proactive and have no other problems. I agree with what you said about FBB, ZS, etc. I’m hoping that because Deng Lun attempted to correct the issue (though not enough, as stated in the article), they won’t cancel him from the entertainment industry completely. Sometimes, I wonder just how involved these celebrities are with their finances or do they just trust their financial team to handle everything. I knew someone who did just that and pretty much got screwed.
Even if he hired and ordered other people to file it for him, it’s still his taxes. It’s his duty to double check what they’re doing is correct, because if something goes wrong he will be held accountable for it. Authorities won’t accept the ignorance excuse always.
I doubt it, FBB has been trying to recreate her stardom in China since her cancellation, she’s still no where to be found in projects and I think she was as productive as DL too. There is no forgiveness so even if he’s tried his best, his image is tainted and won’t get the same amount of fame compared to before all this. Not happy about it because I think he was one of the best in his generation too but hey, doing something unlawful will bring you trouble and we all have to accept that it won’t be the same anymore.
Gasp!! Gas gasp gasp. I hope his career will be ok from this. I’m aware it’s criminal to lie and evade taxes, but he’s such a darling actor. I’ll be so sad if he can’t make it back to the TV screen.